Downtown Dispatches: Spotlight is finally shifting to the west

Updated 11:01 pm, Friday, December 14, 2012

The western edge of downtown hasn't seen the fanfare of Broadway's residential boom, Southtown's continued evolution or the near East Side's newfound chic, but its outlook for 2013 is looking up.

In 2012, the public investment (either money spent or pledged) in west downtown — from the River Walk west to Frio Street — totals $230 million and includes the University Health System's Robert B. Green Campus, the public safety headquarters and street improvements outlined in the 2012-2017 bond program, are the larger projects.

Anchors continue to be the UTSA Downtown Campus, Market Square, the CHRISTUS Children's Hospital of San Antonio, and the Vistana apartment building.

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Factor in the new incentives policy for downtown housing (approved in June by the City Council after months of deliberation) and the possibility of incentives to lure retailers to West Commerce Street, and the city is hoping the private sector will match its enthusiasm for the area in dollars.

The first nibble came this week. Actually, it was more of an all-out tug, when South Side–based 210 Developers announced plans for a 98-unit residential project, five blocks south of UTSA's downtown campus, with about half available for student housing.

For about $10 million, plans for the Birdsong Peanut Factory Lofts at 1025 S. Frio St., would transform a former peanut plant and build other housing structures on adjacent land.

It qualifies for a little more than $1 million in city incentives. And on Thursday, the council approved the sale of an adjacent land parcel for $98,350 to be used as parking.

The city has offered a $400,000 loan to help the developer clean up the lot and add fencing, lighting, landscaping and other public improvements.

Between $26,000 and $40,000 of the debt will be forgiven annually as long as the developer sets aside 30 percent to 50 percent of the units for students.

The 19,000-square-foot, circa-1912 building is the former Birdsong Peanut Factory. Lake|Flato Architects has been hired for the design work.

“We believe we'll be the catalyst project for that neck of the woods,” said Mark Tolley, director of real estate for 210 Developers.

A student housing report for downtown, completed in November, anticipates a demand for 388 to 550 units near UTSA during the next 10 years.

Tolley said his team is working toward completing a portion of the apartments in time for the fall 2013 semester, and with completion set for fall 2014.

It's too early to tell if the Peanut Factory Lofts are a harbinger of growth in that area. At least a substantial investment of public dollars is out of the shell.